Valhi (NYSE:VHI) Stock Crosses Below 200-Day Moving Average - Here's What Happened

Key Points

• Valhi, Inc. (NYSE:VHI) has seen its stock price drop below its 200-day moving average, trading as low as $16.13, which raises concerns among investors.
• Barclays has downgraded Valhi's stock target price from $20.00 to $12.00 and assigned an "underweight" rating, reflecting a negative outlook on the company's performance.
• Valhi recently declared a dividend of $0.08 per share, with a yield of 1.9%, scheduled for payment on September 25th to stockholders of record on September 5th.

Valhi, Inc. (NYSE:VHI - Get Free Report) passed below its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $16.55 and traded as low as $16.13. Valhi shares last traded at $16.46, with a volume of 7,600 shares.

Analyst Upgrades and Downgrades

Separately, Barclays lowered their target price on Valhi from $20.00 to $12.00 and set an "underweight" rating on the stock in a research note on Wednesday, May 28th. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the company presently has an average rating of "Sell" and an average price target of $12.00.

Valhi Stock Performance

The stock has a market capitalization of $465.79 million, a PE ratio of 4.80 and a beta of 1.19. The company has a debt-to-equity ratio of 0.38, a current ratio of 2.83 and a quick ratio of 1.35. The business's fifty day moving average price is $16.60 and its 200-day moving average price is $16.55.

Valhi (NYSE:VHI - Get Free Report) last posted its earnings results on Thursday, August 7th. The basic materials company reported $0.03 earnings per share for the quarter, missing analysts' consensus estimates of $0.76 by ($0.73). The firm had revenue of $540.40 million for the quarter. Valhi had a return on equity of 7.02% and a net margin of 4.69%.

Valhi Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 25th. Stockholders of record on Friday, September 5th will be given a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Friday, September 5th. Valhi's payout ratio is 9.33%.

Institutional Investors Weigh In On Valhi

Large investors have recently added to or reduced their stakes in the business. CWA Asset Management Group LLC boosted its stake in Valhi by 11.2% during the first quarter. CWA Asset Management Group LLC now owns 18,512 shares of the basic materials company's stock valued at $301,000 after buying an additional 1,870 shares during the period. GAMMA Investing LLC raised its holdings in shares of Valhi by 6,670.8% in the 1st quarter. GAMMA Investing LLC now owns 1,625 shares of the basic materials company's stock valued at $26,000 after acquiring an additional 1,601 shares in the last quarter. Squarepoint Ops LLC purchased a new stake in shares of Valhi in the 4th quarter valued at about $315,000. Public Employees Retirement System of Ohio increased its position in shares of Valhi by 105.8% in the fourth quarter. Public Employees Retirement System of Ohio now owns 2,488 shares of the basic materials company's stock worth $58,000 after purchasing an additional 1,279 shares during the last quarter. Finally, Millennium Management LLC bought a new position in shares of Valhi in the fourth quarter worth approximately $203,000. Institutional investors own 3.83% of the company's stock.

About Valhi

Valhi, Inc engages in the chemicals, component products, and real estate management and development businesses in Europe, North America, the Asia Pacific, and internationally. The company's Chemicals segment produces and markets titanium dioxide pigments (TiO2), which are white inorganic pigments used in various applications by paint, plastics, decorative laminate, and paper manufacturers.

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